For customers that have paid a utility deposit to ensure the payment of bills for services rendered by the City of Oswego, the city will pay the customer interest at the annual rate set by the State of Kansas. Interest will be credited to the account on the first billing cycle in January succeeding the deposit and on each billing cycle in January thereafter. Interest credited is subject to call and payment at any time but shall not draw interest. This deposit, together with interest due thereon, may be applied by the city to payment of any unpaid bills, or bills due on discontinuance of services. Deposits will be returned to customers after two full interest cycles with no delinquencies on the account. Any remaining deposit left after the final bill is paid will be returned to the customer.
LETTER OF CREDIT
For customers who provide a letter of credit, it will be necessary to maintain an account with no delinquencies or a utility deposit may be required to continue service. If an account is shut off for nonpayment and a letter of credit is on file, a utility deposit will be required in full along with any unpaid balances before service will be restored.
RESPONSIBLE PARTY AGREEMENT
Deposits will also be waived when a responsible party contract has been signed by a property owner. This situation may apply with a responsible party/tenant. Criteria must be met in order to qualify.
1) The responsible party must be a current customer residing in Oswego, and have established good credit, meeting both criteria for a minimum of 5 years.
2) The responsible party must also remain a current customer. Upon such time the responsible party would no longer reside in Oswego, the tenant must meet one of the following: (A) submit a utility deposit ($200.00) for continued services or (B) have established good credit (at least one full year with no penalties) while utilities are under guarantee of the responsible party.
3) The responsible party agrees to pay any utility bill left unpaid by the person receiving service under the responsible party contract and they understand and agree their utility service will become subject to disconnection if the tenant’s bill is not paid within 10 days of providing notice to the responsible party.